Tips & Tricks for Small Business Bookkeeping
Updated: Oct 4, 2017
For many small businesses, the most common bookkeeping errors are also the easiest to fix. Use these tips & tricks to help keep your business on sound financial footing.
1. Keep Financial Records Organized.
The first thing you need to do is make a checklist of everything. The following is a list of financial and legal documents that you need to organize:
Billing statements for your utilities, credit cards and other monthly expenses;
Salary or payment slips, tax records, employment certificates and other work-related documents;
Deeds and titles of all the properties you own, such as real estate, vehicles and others;
Insurance and medical policies, social-security statements, retirement plans and other benefit contracts, including the name and contact details of the agents and companies, which issued them;
Financial records, such as bank statements, issued checks, stock and bonds certificates and other paper assets;
Manuals, receipts and warranties of purchases, especially those of your appliances and gadgets;
A ledger of your expenses, which also includes debt and loans
Special financial documents, such as your personal statement of assets and liabilities and monthly budget worksheets;
Start to look and organize them in folders. Arrange your documents, such as billings statements and other financial records, chronologically. Remember to properly label them.
2. Keep Personal & Business Finances Separate
Never mix the two up, it will make your accounting much more difficult to handle. It’s a lot easier to keep accurate records if your only dealing with one type of account, so stay organized.
3. Track Expenses
Expenses can be hard to track, business credit cards can be handy tools to make sure all expenses are kept together and tracked. As long as you keep up to date with your payments that is.
4. Set Aside Money For Taxes
Allocating a portion of money throughout the year for taxes can help your business avoid penalties and interest from the IRS for not filing quarterly estimated tax payments and annual tax returns on time. Keeping track of tax deadlines on your calendar along with allowing yourself the correct prep time to make sure the funds are available will help you make payments when they are due.
5. Review your Books Weekly
It’s not enough to review your books on a month-by-month basis. It’s important to stay up to dated about the state of your business as often as possible. Allocating a few hours each week to small business bookkeeping strategies can help you better manage your cash flow, understand your expenses, and keep you abreast of current invoices.
6. Hire Professional Bookkeeping & Tax Resolutions For Help
When it comes to small business bookkeeping, there’s plenty that can go wrong. In certain situations, it’s worth the investment to call in the professionals. Hiring an in-house professional can help you avoid an IRS audit and ensure your business is positioned for ultimate success.
Even if you have a professional bookkeeper, you may want to hire a professional